Small Business Optimism Takes a Hit in March

According to the National Federation of Independent Business (NFIB), the United States witnessed a noticeable decline in small business optimism in March. The optimism index fell by 3.3 points to 97.4, dipping below the 51-year average of 98 and missing market expectations.

Key Findings from the Report

The Uncertainty Index saw a significant drop, decreasing eight points from February's second-highest recorded reading to 96. A stark 16-point drop was observed in the net percentage of owners anticipating better conditions, landing at 21%—the most precipitous fall since December 2020.

Concerns over taxes climbed to 18%, reaching their highest since late 2021, closely trailing labor quality concerns at 19%. Sales expectations weren't spared either, with an 11-point decrease to a mere 3%. While price hikes saw a slight ease to a net 26%, a notable 30% of businesses still plan to increase prices in March, marking a one-year high.